Exhibit 99.1
WhiteHorse Finance, Inc. Announces Third Quarter 2015 Earnings Results
NEW YORK, NY, November 5, 2015– WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the "Company") (NASDAQ: WHF) today announced its financial results for the quarter ended September 30, 2015.
Third Quarter 2015 Summary Highlights
| · | New investments of $27.9 million across three loans in three different sectors |
| · | Net investment income increased 40.0% year-over-year to $5.7 million |
| · | Third quarter net investment income of $0.378 per share |
| · | Third quarter distribution of $0.355 per share |
Jay Carvell, WhiteHorse Finance’s Chief Executive Officer commented, “We are pleased to report another strong quarter for WhiteHorse Finance. Through our affiliation with H.I.G. Capital, we continue to source attractive investments and manage our portfolio for the long term benefit of our shareholders. H.I.G.’s support was also evidenced this quarter in its affiliate buying program, where H.I.G. funds purchased over $5 million of WHF shares in the secondary market. We are pleased with the forward pipeline and believe opportunities in the credit markets will allow us to continue to achieve our origination strategy."
Portfolio and Investment Activity
As of September 30, 2015, the fair value of WhiteHorse Finance’s investment portfolio was $376.1 million, compared with $387.5 million as of June 30, 2015. The portfolio at September 30, 2015 consisted of 32 positions across 26 companies with an average investment size of $11.8 million and a weighted average effective yield of 11.6 %. The majority of the portfolio was comprised of senior secured loans and more than 96.7% of these loans were variable-rate investments (primarily indexed to LIBOR), which should continue to position the portfolio well for a potential rising interest rate environment.
For the three months ended September 30, 2015, WhiteHorse Finance invested $27.9 million across three portfolio companies. Gross proceeds from sales and repayments totaled $35.3 million for the quarter. The Company continued to be highly selective with the deployment of capital into new investments.
Results of Operations
For the three months ended September 30, 2015, net investment income was $5.7 million, compared with $4.0 million for the same period in the prior year, representing an increase of 40.0%.The increase in net investment income was primarily attributable to an increase in the average earning investment balance over the same period in the prior year.
For the three months ended September 30, 2015, WhiteHorse Finance reported realized and unrealized losses on investments of $4.2 million. This compares with realized and unrealized gains on investments of $0.5 million for the three months ended September 30, 2014. The increase in realized and unrealized losses on investments was primarily attributable to fair value adjustments on three investments.
WhiteHorse Finance reported a net increase in net assets of $1.4 million for the three months ended September 30, 2015, which compares with $4.6 million for the three months ended September 30, 2014.
WhiteHorse Finance’s NAV was $221.4 million, or $14.77 per share, as of September 30, 2015, as compared with $225.2 million, or $15.03 per share, reported as of June 30, 2015.
Liquidity and Capital Resources
As of September 30, 2015, WhiteHorse Finance had cash and cash equivalents of $25.9 million, as compared with $27.3 million as of June 30, 2015, inclusive of restricted cash. As of September 30, 2015, the Company had $61.5 million of undrawn capacity under its revolving credit facility.
Distributions
On August 20, 2015, the Company declared a distribution of $0.355 per share for the quarter ended September 30, 2015, consistent for the twelfth consecutive quarter since the Company’s IPO. The distribution was payable on October 2, 2015 to shareholders of record as of September 21, 2015.
Distributions are paid from taxable earnings and may include return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in the Company's periodic reports filed with the Securities and Exchange Commission.
Conference Call
WhiteHorse Finance will host a conference call to discuss its third quarter results at 10:00 am ET on Thursday, November 5, 2015. To access the teleconference, please dial 706-758-9224 (domestic and international) approximately 10 minutes before the teleconference’s scheduled start time and reference ID#64841910. Investors may also access the call on the investor relations portion of the Company’s website atwww.whitehorsefinance.com.
If you are unable to access the live teleconference, a replay will be available beginning approximately two hours after the call’s completion through November 12, 2015. The teleconference replay can be accessed by dialing 404-537-3406 (domestic and international) and entering ID#64841910. A webcast replay will also be available on the investor relations portion of the Company’s website atwww.whitehorsefinance.com.
About WhiteHorse Finance, Inc.
WhiteHorse Finance is a business development company that originates and invests in loans to privately held small-cap companies across a broad range of industries. The Company's investment activities are managed by its investment adviser, H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, L.L.C. (“H.I.G. Capital”). H.I.G. Capital is a leading global alternative asset manager with $19 billion of capital under management* across a number of funds focused on the small and mid-cap markets. For more information about H.I.G. Capital, please visit http://www.higcapital.com. For more information about the Company, please visit http://www.whitehorsefinance.com.
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
* Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates.
Contacts
WhiteHorse Finance, Inc.
Jay Carvell, 214-855-2999
jcarvell@higwhitehorse.com
or
WhiteHorse Finance, Inc.
Gerhard Lombard, 212-506-0500
glombard@higwhitehorse.com
or
Prosek Partners
Brian Schaffer, 212-279-3115
bschaffer@prosek.com
Source: WhiteHorse Finance, Inc.
(Financial Tables Follow)
WhiteHorse Finance, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)
| | | September 30, 2015 | | | December 31, 2014 | |
| | | (Unaudited) | | | | |
| Assets | | | | | | | | |
| Investments, at fair value | | | | | | | | |
| Non-controlled/non-affiliate company investments | | $ | 355,888 | | | $ | 383,500 | |
| Non-controlled affiliate company investments | | | 20,200 | | | | 20,000 | |
| Total investments, at fair value (amortized cost $378,201 and $401,062, respectively) | | | 376,088 | | | | 403,500 | |
| | | | | | | | | |
| Cash and cash equivalents | | | 16,731 | | | | 11,647 | |
| Restricted cash and cash equivalents | | | 9,169 | | | | 4,495 | |
| Interest receivable | | | 2,676 | | | | 2,702 | |
| Deferred financing costs | | | 4,220 | | | | 4,004 | |
| Prepaid expenses and other receivables | | | 216 | | | | 494 | |
| Total assets | | $ | 409,100 | | | $ | 426,842 | |
| | | | | | | | | |
| Liabilities | | | | | | | | |
| Credit facility | | $ | 88,500 | | | $ | 105,500 | |
| Senior notes | | | 30,000 | | | | 30,000 | |
| Unsecured term loan | | | 55,000 | | | | 55,000 | |
| Distributions payable | | | 5,319 | | | | 5,319 | |
| Management fees payable | | | 5,487 | | | | 5,006 | |
| Payable for investments purchased | | | 2,865 | | | | — | |
| Accounts payable and accrued expenses | | | 577 | | | | 659 | |
| Total liabilities | | | 187,748 | | | | 201,484 | |
| | | | | | | | | |
| Commitments and contingencies | | | | | | | | |
| | | | | | | | | |
| Net assets | | | | | | | | |
| Common stock, 14,982,857 shares issued and outstanding, par value $0.001 per share and 100,000,000 authorized | | | 15 | | | | 15 | |
| Paid-in capital in excess of par | | | 228,731 | | | | 228,731 | |
| Accumulated overdistributed net investment income | | | (4,994 | ) | | | (5,918 | ) |
| Accumulated realized gains on investments | | | 349 | | | | 728 | |
| Accumulated unrealized (depreciation) appreciation on investments | | | (2,749 | ) | | | 1,802 | |
| Total net assets | | | 221,352 | | | | 225,358 | |
| Total liabilities and total net assets | | $ | 409,100 | | | $ | 426,842 | |
| | | | | | | | | |
| Number of shares outstanding | | | 14,982,857 | | | | 14,982,857 | |
| Net asset value per share | | $ | 14.77 | | | $ | 15.04 | |
WhiteHorse Finance, Inc.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share data)
| | | Three months ended
September 30, | | | Nine months ended
September 30, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| Investment income | | | | | | | | | | | | | | | | |
| From non-controlled/non-affiliate company investments | | | | | | | | | | | | | | | | |
| Interest income | | $ | 10,338 | | | $ | 8,712 | | | $ | 31,545 | | | $ | 24,919 | |
| Fee income | | | 681 | | | | 346 | | | | 1,505 | | | | 1,407 | |
| From non-controlled affiliate company investments | | | | | | | | | | | | | | | | |
| Dividend income | | | 688 | | | | 207 | | | | 2,090 | | | | 207 | |
| Total investment income | | | 11,707 | | | | 9,265 | | | | 35,140 | | | | 26,533 | |
| | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | |
| Interest expense | | | 1,654 | | | | 1,405 | | | | 5,028 | | | | 4,146 | |
| Base management fees | | | 2,125 | | | | 1,871 | | | | 6,377 | | | | 5,439 | |
| Performance-based incentive fees | | | 1,415 | | | | 1,011 | | | | 4,220 | | | | 2,143 | |
| Administrative service fees | | | 255 | | | | 427 | | | | 898 | | | | 1,111 | |
| General and administrative expenses | | | 596 | | | | 508 | | | | 1,736 | | | | 2,115 | |
| Total expenses, before fees waived | | | 6,045 | | | | 5,222 | | | | 18,259 | | | | 14,954 | |
| Base management fees waived | | | — | | | | — | | | | — | | | | (447 | ) |
| Total expenses, net of fees waived | | | 6,045 | | | | 5,222 | | | | 18,259 | | | | 14,507 | |
| Net investment income | | | 5,662 | | | | 4,043 | | | | 16,881 | | | | 12,026 | |
| | | | | | | | | | | | | | | | | |
| Realized and unrealized (losses) gains on investments | | | | | | | | | | | | | | | | |
| Net realized losses | | | | | | | | | | | | | | | | |
| Non-controlled/non-affiliate company investments | | | — | | | | — | | | | (379 | ) | | | — | |
| Net realized losses | | | — | | | | — | | | | (379 | ) | | | — | |
| Net change in unrealized (depreciation) appreciation | | | | | | | | | | | | | | | | |
| Non-controlled/non-affiliate company investments | | | (4,234 | ) | | | 640 | | | | (4,751 | ) | | | 4,044 | |
| Non-controlled affiliate company investments | | | — | | | | (120 | ) | | | 200 | | | | (120 | ) |
| Net change in unrealized (depreciation) appreciation | | | (4,234 | ) | | | 520 | | | | (4,551 | ) | | | 3,924 | |
| Net realized and unrealized (losses) gains on investments | | | (4,234 | ) | | | 520 | | | | (4,930 | ) | | | 3,924 | |
| Net increase in net assets resulting from operations | | $ | 1,428 | | | $ | 4,563 | | | $ | 11,951 | | | $ | 15,950 | |
| | | | | | | | | | | | | | | | | |
| Per common share data | | | | | | | | | | | | | | | | |
| Basic and diluted earnings per common share | | $ | 0.10 | | | $ | 0.31 | | | $ | 0.80 | | | $ | 1.06 | |
| Dividends and distributions declared per common share | | $ | 0.36 | | | $ | 0.36 | | | $ | 1.07 | | | $ | 1.07 | |
| Basic and diluted weighted average common shares outstanding | | | 14,982,857 | | | | 14,982,857 | | | | 14,982,857 | | | | 14,982,815 | |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited)
September 30, 2015
(in thousands)
| Investment Type(1) | | Spread
Above
Index(2) | | Interest
Rate(3) | | Maturity
Date | | Principal
Amount | | | Amortized
Cost | | | Fair
Value | | | Fair Value
As A
Percentage
Of Net Assets | |
| North America | | | | | | | | | | | | | | | | | | | | | | |
| Debt Investments | | | | | | | | | | | | | | | | | | | | | | |
| Advertising | | | | | | | | | | | | | | | | | | | | | | |
| Intersection Acquisition, LLC. | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+10.00% | | 11.00% | | 9/15/20 | | $ | 16,566 | | | $ | 16,400 | | | $ | 16,400 | | | | 7.41 | % |
| | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| Broadcasting | | | | | | | | | | | | | | | | | | | | | | |
| Multicultural Radio Broadcasting, Inc. | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+10.50% | | 11.50% | | 6/27/19 | | | 14,850 | | | | 14,850 | | | | 14,806 | | | | 6.69 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| Consumer Finance | | | | | | | | | | | | | | | | | | | | | | |
| Golden Pear Funding III, LLC(7) | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan(6) | | L+10.25% | | 11.25% | | 6/25/20 | | | 25,000 | | | | 24,720 | | | | 24,500 | | | | 11.07 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Revolving Loan | | L+10.25% | | 11.25% | | 6/25/20 | | | — | | | | (55 | ) | | | — | | | | — | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| Oasis Legal Finance, LLC(6) (7) | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | N/A(5) | | 10.50% | | 9/30/18 | | | 9,000 | | | | 8,872 | | | | 8,973 | | | | 4.05 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Sigue Corporation(6) | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+10.00% | | 11.00% | | 12/27/18 | | | 25,000 | | | | 24,646 | | | | 24,750 | | | | 11.18 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | 59,000 | | | | 58,183 | | | | 58,223 | | | | 26.30 | |
| Data Processing & Outsourced Services | | | | | | | | | | | | | | | | | | | | | | |
| Future Payment Technologies, L.P. (6) | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+12.00% | | 13.00% | | 12/31/18 | | | 36,262 | | | | 35,260 | | | | 36,262 | | | | 16.38 | |
| | | (1.00% Floor) | | (2.00%PIK) | | | | | | | | | | | | | | | | | | |
| Diversified Support Services | | | | | | | | | | | | | | | | | | | | | | |
| Expert Global Solutions, Inc.(6) | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+11.00% | | 12.50% | | 10/3/18 | | | 7,500 | | | | 7,434 | | | | 7,410 | | | | 3.35 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | |
| Orion Healthcorp, Inc. | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+9.00% | | 11.00% | | 9/30/17 | | | 7,495 | | | | 7,312 | | | | 7,540 | | | | 3.40 | |
| | | (2.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| Sitel Worldwide Corporation | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+9.50% | | 10.50% | | 9/18/22 | | | 8,670 | | | | 8,497 | | | | 8,575 | | | | 3.87 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| Smile Brands Group Inc. | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | P+5.25% | | 8.50% | | 8/16/19 | | | 11,760 | | | | 11,591 | | | | 10,219 | | | | 4.62 | |
| | | (3.25% Floor) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | 35,425 | | | | 34,834 | | | | 33,744 | | | | 15.24 | |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited) (Continued)
September 30, 2015
(in thousands)
| Investment Type(1) | | Spread
Above
Index(2) | | Interest
Rate(3) | | Maturity
Date | | Principal
Amount | | | Amortized
Cost | | | Fair
Value | | | Fair Value
As A
Percentage
Of Net Assets | |
| Electronic Equipment & Instruments | | | | | | | | | | | | | | | | | | | | | | |
| AP Gaming I, LLC | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+8.25% | | 9.25% | | 12/20/20 | | $ | 9,825 | | | $ | 9,581 | | | $ | 9,746 | | | | 4.40 | % |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| Food Retail | | | | | | | | | | | | | | | | | | | | | | |
| Crews of California, Inc. | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan(6) | | L+11.00% | | 12.00% | | 11/20/19 | | | 15,131 | | | | 14,837 | | | | 14,889 | | | | 6.73 | |
| | | (1.00% Floor) | | (1.00%PIK) | | | | | | | | | | | | | | | | | | |
| First Lien Secured Revolving Loan | | L+11.00% | | 12.00% | | 11/20/19 | | | 3,507 | | | | 3,413 | | | | 3,450 | | | | 1.56 | |
| | | (1.00% Floor) | | (1.00%PIK) | | | | | | | | | | | | | | | | | | |
| First Lien Secured Delayed Draw Term | | L+11.00% | | 12.00% | | 11/20/19 | | | 5,021 | | | | 4,928 | | | | 4,941 | | | | 2.23 | |
| Loan | | (1.00% Floor) | | (1.00%PIK) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | 23,659 | | | | 23,178 | | | | 23,280 | | | | 10.52 | |
| Health Care Distributors | | | | | | | | | | | | | | | | | | | | | | |
| P2 Newco Acquisition, Inc. (6) | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+8.50% | | 9.50% | | 10/22/21 | | | 6,000 | | | | 5,950 | | | | 5,994 | | | | 2.71 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| Health Care Facilities | | | | | | | | | | | | | | | | | | | | | | |
| Coastal Sober Living, LLC(6) | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+9.25% | | 10.25% | | 6/30/19 | | | 41,580 | | | | 40,948 | | | | 41,248 | | | | 18.63 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| Grupo HIMA San Pablo, Inc. | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+7.00% | | 8.50% | | 1/31/18 | | | 14,625 | | | | 14,464 | | | | 14,625 | | | | 6.61 | |
| | | (1.50% Floor) | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | N/A(5) | | 13.75% | | 7/31/18 | | | 1,000 | | | | 968 | | | | 998 | | | | 0.45 | |
| | | | | | | | | | 57,205 | | | | 56,380 | | | | 56,871 | | | | 25.69 | |
| Health Care Technology | | | | | | | | | | | | | | | | | | | | | | |
| Client Network Services, Inc. | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan(6) | | L+13.00% | | 13.50% | | 4/24/19 | | | 13,588 | | | | 13,312 | | | | 13,616 | | | | 6.15 | |
| | | (0.50% Floor) | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Revolving Loan | | P+12.00% | | 15.25% | | 4/24/19 | | | — | | | | — | | | | — | | | | — | |
| | | (3.25% Floor) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | 13,588 | | | | 13,312 | | | | 13,616 | | | | 6.15 | |
| Integrated Telecommunication Services | | | | | | | | | | | | | | | | | | | | | | |
| Securus Technologies Holdings, Inc. | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+7.75% | | 9.00% | | 4/30/21 | | | 9,090 | | | | 9,058 | | | | 7,799 | | | | 3.53 | |
| | | (1.25% Floor) | | | | | | | | | | | | | | | | | | | | |
WhiteHorse Finance, Inc.
Consolidated Schedule of Investments (Unaudited) (Continued)
September 30, 2015
(in thousands)
| Investment Type(1) | | Spread
Above
Index(2) | | Interest
Rate(3) | | Maturity
Date | | Principal
Amount | | | Amortized
Cost | | | Fair
Value | | | Fair Value
As A
Percentage
Of Net Assets | |
| | | | | | | | | | | | | | | | | | | |
| Oil & Gas Drilling | | | | | | | | | | | | | | | | | | | | | | |
| ProPetro Services, Inc. | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+6.25% | | 7.25% | | 9/30/19 | | $ | 9,000 | | | $ | 8,930 | | | $ | 7,407 | | | | 3.35 | % |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| Oil & Gas Exploration & Production | | | | | | | | | | | | | | | | | | | | | | |
| Caelus Energy Alaska O3, LLC | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+7.50% | | 8.75% | | 4/15/20 | | | 13,000 | | | | 12,849 | | | | 11,388 | | | | 5.14 | |
| | | (1.25% Floor) | | | | | | | | | | | | | | | | | | | | |
| Larchmont Resources, LLC | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+8.75% | | 9.75% | | 8/7/19 | | | 1,756 | | | | 1,789 | | | | 1,478 | | | | 0.67 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | 14,756 | | | | 14,638 | | | | 12,866 | | | | 5.81 | |
| Other Diversified Financial Services | | | | | | | | | | | | | | | | | | | | | | |
| RCS Capital Corporation(7) | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+10.50% | | 11.50% | | 4/29/21 | | | 20,750 | | | | 20,689 | | | | 20,522 | | | | 9.27 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| The Pay-O-Matic Corp. | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | L+11.00% | | 12.00% | | 3/31/18 | | | 9,875 | | | | 9,704 | | | | 9,885 | | | | 4.47 | |
| | | (1.00% Floor) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | 30,625 | | | | 30,393 | | | | 30,407 | | | | 13.74 | |
| Specialized Consumer Services | | | | | | | | | | | | | | | | | | | | | | |
| Pre-Paid Legal Services, Inc.(6) | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+9.00% | | 10.25% | | 7/1/20 | | | 18,000 | | | | 17,823 | | | | 18,108 | | | | 8.18 | |
| | | (1.25% Floor) | | | | | | | | | | | | | | | | | | | | |
| Specialized Finance | | | | | | | | | | | | | | | | | | | | | | |
| GMT Holdings 1, Ltd. & GMT Holdings 12, Ltd.(4) (6) (7) | | | | | | | | | | | | | | | | | | | | | | |
| First Lien Secured Term Loan | | N/A(5) | | 10.00% | | 6/30/17 | | | 1,860 | | | | 1,876 | | | | 1,860 | | | | 0.84 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Trucking | | | | | | | | | | | | | | | | | | | | | | |
| Fox Rent A Car, Inc.(6) | | | | | | | | | | | | | | | | | | | | | | |
| Second Lien Secured Term Loan | | L+12.00% | | 12.19% | | 10/31/19 | | | 7,500 | | | | 7,435 | | | | 7,387 | | | | 3.34 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Debt Investments | | | | | | | | | 363,211 | | | | 358,081 | | | | 354,776 | | | | 160.28 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Equity Investments | | | | | | | | | | | | | | | | | | | | | | |
| Diversified Support Services | | | | | | | | | | | | | | | | | | | | | | |
| Constellation Health, LLC Warrants(6) | | N/A | | N/A | | 9/30/18 | | | — | | | | — | | | | 901 | | | | 0.41 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Food Retail | | | | | | | | | | | | | | | | | | | | | | |
| Crews of California, Inc. Warrants(6) | | N/A | | N/A | | 12/31/24 | | | — | | | | — | | | | 128 | | | | 0.06 | |
| Nicholas & Associates, LLC Warrants(6) | | N/A | | N/A | | 12/31/24 | | | — | | | | — | | | | 24 | | | | 0.01 | |
| Pinnacle Management Group, LLC Warrants(6) | | N/A | | N/A | | 12/31/24 | | | — | | | | — | | | | 46 | | | | 0.02 | |
| RC3 Enterprises, LLC Warrants(6) | | N/A | | N/A | | 12/31/24 | | | — | | | | — | | | | 13 | | | | 0.01 | |
| | | | | | | | | | — | | | | — | | | | 211 | | | | 0.10 | |
| Specialized Finance | | | | | | | | | | | | | | | | | | | | | | |
| NMFC Senior Loan Program I LLC Units(6)(7)(8) | | N/A | | N/A | | 6/10/19 | | | — | | | | 20,120 | | | | 20,200 | | | | 9.12 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Equity Investments | | | | | | | | | — | | | | 20,120 | | | | 21,312 | | | | 9.63 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments | | | | | | | | $ | 363,211 | | | $ | 378,201 | | | $ | 376,088 | | | | 169.91 | % |
| (1) | Except as otherwise noted, all investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, as amended (the “1940 Act”), and provide collateral for the Company’s credit facility. |
| (2) | The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or the Prime Rate (“P”), which resets monthly, quarterly or semiannually. |
| (3) | The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the payment-in-kind (“PIK”) interest rate, as the case may be. |
| (4) | WhiteHorse Finance, Inc.’s investments in GMT Holdings 1, Ltd. and GMT Holdings 12, Ltd. are held through its subsidiary Bayside Financing S.A.R.L. |
| (5) | Interest rate is fixed and accordingly the spread above the index is not applicable. |
| (6) | The investment or a portion of the investment does not provide collateral for the Company’s credit facility. |
| (7) | Not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of total assets. Qualifying assets represent 81% of total assets. |
| (8) | Investment is a non-controlled/affiliate investment as defined by the 1940 Act. |
